57-26-104 - Security instrument creates assignment of rents -- Assignment of rents creates security interest.
57-26-104. Security instrument creates assignment of rents -- Assignment of rentscreates security interest.
(1) An enforceable security instrument creates an assignment of rents arising from thereal property described in the security instrument, unless the security instrument providesotherwise.
(2) An assignment of rents creates a presently effective security interest in all accruedand unaccrued rents arising from the real property described in the document creating theassignment, regardless of whether the document is in the form of an absolute assignment, anabsolute assignment conditioned upon default, an assignment as additional security, or any otherform. The security interest in rents is separate and distinct from any security interest held by theassignee in the real property.
Enacted by Chapter 139, 2009 General Session